Labour/Labor :: Two or More Types : Problems and Solutions
Problem 1
25 Semiskilled workers @ 7.50 per hour for 50 hours
15 Skilled workers @ 8.25 per hour for 50 hours
The actual labour force employed for producing A is:
28 Semiskilled workers @ 7.00 per hour for 50 hours.
14 Skilled workers @ 8.50 per hour for 40 hours
Solution
[LCV = ; LRPV = ; LEV/LUV = ; LITV = – LMV/LGCV = 0 ; LYV/LSUV = ;]
Problem 2
Solution
[LCV = ; LRPV = ; LEV/LUV = ; LITV = – LMV/LGCV = 0 ; LYV/LSUV = ;]
Problem 3
60 skilled men at 5.00 Paise per hour for 25 hours  7,500 
80 semi – skilled men at 3.50 per hour for 40 hours  11,200 
18,700 
75 skilled men at 6.00 per hour for 24 hours  10,800 
100 semi – skilled men at 3.40 per hour for 42 hours  14,280 
25,080 
Solution
[LCV = ; LRPV = ; LEV/LUV = ; LITV = – LMV/LGCV = 0; LYV/LSUV = ;]
Problem 4
Standard  Actual 

Grade A 100 workers @ 12 p.h.  Grade A 122 workers @ 12.50 p.h. 
Grade B 75 workers @ 10 p.h.  Grade B 88 workers @ 9.50 p.h. 
Budgeted hours 80 per worker  Actual Hours 80 per worker 
Standard yield 4,000 units  Actual production 4,100 units 
Solution
[LCV = ; LRPV = ; LEV/LUV = ; LITV = – LMV/LGCV = 0 ; LYV/LSUV = ;]
Problem 5
Standard  Actual  

Labour  No.of persons  Rate  Hours worked  Labour  No. of persons  Rate  Hours worked 
Grade I  90  10  100  Grade I  85  12  120 
Grade II  55  8  100  Grade II  55  7.50  120 
Grade III  40  6  100  Grade III  50  7  120 
Standard rate production:200 units  Actual production:190 units 
Solution
[LCV = ; LRPV = ; LEV/LUV = ; LITV = – LMV/LGCV = 0 ; LYV/LSUV = ;]
Problem 6
Standard  Actual  

Number of men employed Output in units Number of working days in a month Average wages per man per month  80 4,000 25 1,200  90 4,180 24 1,140 
Solution
[LCV = ; LRPV = ; LEV/LUV = ; LITV = – LMV/LGCV = 0; LYV/LSUV = ;]
Problem 7
Skilled  140  weekly wage  500  
Semi –skilled  70  "  "  450 
Unskilled  90  "  "  350 
Skilled  150  weekly wage  515  
Semi –skilled  80  "  "  440 
Unskilled  70  "  "  365 
Solution
[LCV = ; LRPV = ; LEV/LUV = ; LITV = – LMV/LGCV = 0 ; LYV/LSUV = ;]
Problem 8
Hrs  Rate ()  Total ()  

Skilled Workers  8  15 per hour  120 
SemiSkilled Workers  7  12 per hour  84 
Unskilled Workers  5  8 per hour  40 
244 
Rate Per hour ()  Total ()  

Articles Produced  1,000 units  
Skilled Workers  7,800 hrs  16  1,24,800 
Unskilled Workers  5,200 hrs  8.50  44,200 
SemiSkilled Workers  7,250 hrs  13.40  97,150 
2,66,150 
Solution
[LCV = ; LRPV = ; LEV/LUV = ; LITV = – LMV/LGCV = 0 and LYV/LSUV = ;]
Problem 9
Category of Worker  Standard No. of Labour  Weekly Wage Rate per laborer  Actual No. of Labor  Weekly Wage Rate per labourer 
Skilled  70  250  70  260 
SemiSkilled  55  225  60  225 
Unskilled  75  150  80  140 
Solution
[LCV = ; LRPV = ; LEV/LUV = ; LITV = – LMV/LGCV = 0 ; LYV/LSUV = ;]
Problem 10
45 men @ 12 per hour for 50 hours
25 women @ 10 per hour for 40 hours
15 boys @ 8 per hour for 50 hours.
But actual labour force used during that week was:
42 men @ 13 per hour for 55 hours.
20 women @ 11 per hour for 40 hours.
8 women @ 10 per hour for 40 hours.
13 boys @ 8.25 per hour for 60 hours.
You are required to calculate all possible labour/labor variances:
Solution
[LCV = ; LRPV = ; LEV/LUV = ; LITV = – LMV/LGCV = 0 ; LYV/LSUV = ;]
Problem 11
Total standard Hours  Total standard Cost ()  

40 men  @ 5 per hour for 50hrs  2,000  10,000  
25 women  @ 3 per hour for 40 hrs  1,000  3,000  
20 boys  @ 2.50 per hour for 25 hrs  500  1,250  
3,500  14,250 
Articles produced, 1,000
Total actual Hours  Total Cost ()  

55 men  @ 6 per hour for 50 hrs  2,750  16,500  
20 women  @ 2.50 per hour for 30 hrs  600  1,500  
10 boys  @ 3 per hour for 15 hrs  150  450  
3,500  18,450 
Solution
[LCV = ; LRPV = ; LEV/LUV = ; LITV = – LMV/LGCV = 0;LYV/LSUV = ;]
Problem 12
Standard  

For 100 hours  Grade A : 80 workers @ 13 per hour Grade B : 70 workers @ 11 per hour 
Actual  

For 100 hours  Grade A : 78 workers @ 12.50 per hour Grade B : 72 workers @ 10 per hour 
Solution
[LCV = ; LRPV = ; LEV/LUV = ; LITV = – LMV/LGCV = 0 ;LYV/LSUV = ;]
Problem 13
Skilled workers  Semiskilled workers  Unskilled workers  

(a)  Standard number of workers in the gang  28  12  10 
(b)  Standard wage rate per hour ()  15  12  10 
(c)  Actual number of workers employed in the gang during the week  25  14  11 
(d)  Actual wage rate per hour ()  16  12  9 
Calculate the different labour variances.
Solution
[LCV = ; LRPV = ; LEV/LUV = ; LITV = – LMV/LGCV = 0 ; LYV/LSUV = ;]
Problem 14
Solution
[LCV = ; LRPV = ; LEV/LUV = ; LITV = – LMV/LGCV = 0 ; LYV/LSUV = ;]
Problem 15
Division B makes highly complex work stations which incorporate material handing, automatic controls and robotics. Manufacture is a team effort and the team specified for work station 26 comprises:
2 supervisors paid 8 per hour
10 fitters paid 6 per hour
6 electricians paid 6 per hour.
2 electronics engineers paid 7 per hour
4 labourers paid 4 per hour
Output is measured in standard hours and 90 standard hours are expected for every 100 clock hours. During a period the following data were recorded.
Actual hours  Actual pay  

Supervisors  170  1,394  
Fitters  820  4,920  
Electricians  420  2,562  
Electronics engineers  230  1,725  
Labours  280  1,120  
Total 


The factory director of Division B is anxious to gain the maximum information possible from the standard costing system. He sees no reason why the normal labour efficiency variance could not be divided into subvariances in order to show separately the effects of nonstandard team composition and team productivity in a similar fashion to the material usage variance which can be subdivided into mix and yield.
You are required to calculate labour variances.
Solution
[LCV = ; LRPV = ; LEV/LUV = ; LITV = – LMV/LGCV = 0;LYV/LSUV = ;]